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Refer to Scenario 17.3. Moral hazard would be eliminated in this situation if:

corie

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Refer to Scenario 17.3. Moral hazard would be eliminated in this situation if:

Refer to Scenario 17.3. Moral hazard would be eliminated in this situation if
A) the insurer would always charge $300.
B) the insurer would always charge $6000.
C) the insurer could costlessly monitor whether a fire prevention program has been implemented, and adjust the premium upward if it is not.
D) the insurer could costlessly monitor whether a fire prevention program has been implemented, and adjust the premium downward if it is not.
E) the fire did not occur.

Textbook

Microeconomics

Edition: 8^th

Author: Pindyck

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boransal

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corie Author

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Correct

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This site is awesome

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Smart ... Thanks!

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